Budget 2019-20: Infrastructure total capital outlay to be Rs 4.7 trillion

01 Mar 2019 CW Staff

Union Minister for Finance, Corporate Affairs, Railways and Coal, Piyush Goyal presented an Interim Budget for FY2019-20 recently. The revised capital outlay (budgetary allocation plus internal and extra budgetary resources, or IEBR1) for infrastructure is 11 per cent higher than the budget estimate (BE), with the civil aviation and power segments logging the highest achievement ratios, according to a report issued by CRISIL. While this is good, there is a possibility that the actual spend could turn out to be lower as was the case in fiscal 2018, where it was 10 per cent lower than the revised estimate (RE).

The total capital outlay for infrastructure in fiscal 2020 is Rs 4.7 trillion, a meagre 5 per cent increase versus the fiscal 2019 RE and 16 per cent higher than the fiscal 2019 BE. Among infrastructure segments, railways and roads are the biggest beneficiaries for fiscal 2020, accounting for two-thirds of the investment outlay.

However, CRISIL’s detailed analysis suggests that the infrastructure sector will need additional funds. For instance, the railways will miss the Rs 8.5 trillion capex target over fiscals 2016 to 2020, as the overall capex during this period is projected close to Rs 6.5 trillion. Also, budgetary support to the NHAI has fallen marginally, though the increase in IEBR supports outlay growth in fiscal 2020 versus the fiscal 2019 RE. The analysis expects NHAI execution to grow 15 per cent to 4,300 km in fiscal 2020 but a marginal fall in budgetary support will imply an increase in its dependence on borrowings.

According to Amish Mehta, COO, CRISIL, “Execution in infrastructure has been splendid. The revised capital outlay (budgetary allocation + internal and extra budgetary resources) for infrastructure for this fiscal is 11 per cent higher versus the budget estimate. However, a note of caution is warranted as actual expenditure this fiscal fell short by 10 per cent compared to the revised estimate then presented.”

Also, extension of income tax benefits to affordable housing projects under Section 80-IBA for one more year—till March 31, 2020—has been proposed in the housing sector. “In real estate, the relaxation on holding period of unsold inventory for taxation of notional rental income to two years would provide marginal relief to developers under stress because of tight liquidity and weak absorption,” he adds.

Union Minister for Finance, Corporate Affairs, Railways and Coal, Piyush Goyal presented an Interim Budget for FY2019-20 recently. The revised capital outlay (budgetary allocation plus internal and extra budgetary resources, or IEBR1) for infrastructure is 11 per cent higher than the budget estimate (BE), with the civil aviation and power segments logging the highest achievement ratios, according to a report issued by CRISIL. While this is good, there is a possibility that the actual spend could turn out to be lower as was the case in fiscal 2018, where it was 10 per cent lower than the revised estimate (RE).The total capital outlay for infrastructure in fiscal 2020 is Rs 4.7 trillion, a meagre 5 per cent increase versus the fiscal 2019 RE and 16 per cent higher than the fiscal 2019 BE. Among infrastructure segments, railways and roads are the biggest beneficiaries for fiscal 2020, accounting for two-thirds of the investment outlay.However, CRISIL’s detailed analysis suggests that the infrastructure sector will need additional funds. For instance, the railways will miss the Rs 8.5 trillion capex target over fiscals 2016 to 2020, as the overall capex during this period is projected close to Rs 6.5 trillion. Also, budgetary support to the NHAI has fallen marginally, though the increase in IEBR supports outlay growth in fiscal 2020 versus the fiscal 2019 RE. The analysis expects NHAI execution to grow 15 per cent to 4,300 km in fiscal 2020 but a marginal fall in budgetary support will imply an increase in its dependence on borrowings.According to Amish Mehta, COO, CRISIL, “Execution in infrastructure has been splendid. The revised capital outlay (budgetary allocation + internal and extra budgetary resources) for infrastructure for this fiscal is 11 per cent higher versus the budget estimate. However, a note of caution is warranted as actual expenditure this fiscal fell short by 10 per cent compared to the revised estimate then presented.”Also, extension of income tax benefits to affordable housing projects under Section 80-IBA for one more year—till March 31, 2020—has been proposed in the housing sector. “In real estate, the relaxation on holding period of unsold inventory for taxation of notional rental income to two years would provide marginal relief to developers under stress because of tight liquidity and weak absorption,” he adds.

Infrastructure Transport

15 May 2026

Pune Division to Remove All Diamond Crossings by Year-End

The Pune railway division has announced plans to remove all 16 diamond crossings by the end of 2026 as part of a major yard remodelling project following the derailment of a Vande Bharat Express at Pune Junction on April 27. Railway authorities said the replacements aim to improve safety and streamline train operations across the busy station. The decision followed a Central Railway finding that the accident involved a non-standard diamond crossing and highlighted the need for replacement. Regular maintenance of existing crossings will continue until the replacement work is completed. Official..

Infrastructure Urban

15 May 2026

Goa Declares 80 Million Square Metres No Development Zone

The Goa state government has declared 80 million square metres (mn) of land a no development zone, designating the area as protected from new construction. The notification reclassifies tracts across the state under a no development category for planning and regulatory purposes. The declaration signals a formal halt to new building permits within the defined zone. Authorities indicated that maps will be issued to show broad boundaries while detailed surveys will refine precise limits. The move transfers responsibility for enforcement to local planning authorities and relevant departments, whic..

Infrastructure Urban

15 May 2026

Micro Mitti To Invest Rs Three Billion In Indore Project

Micro Mitti has announced an investment of Rs three billion (Rs 3 bn) to develop a commercial project in Indore. The company said the allocation marks a significant commitment to the city's real estate sector and will target commercial space demand. The announcement follows the firm's stated strategy to expand its asset base outside its existing markets. Company executives outlined the plan in a corporate release and provided limited additional details. The commercial project is intended to serve office, retail and related uses in response to demand from businesses and consumers in the region...